The President of the Czech Republic signed a consolidation law, the main objective of which is to reduce the budget deficit. It is planned to amend 65 laws. Tax benefits will mainly be removed to reduce the burden on the budget.
Most provisions are scheduled to take effect as early as January 1.
The main changes in the tax sphere will affect corporate tax, VAT, personal income tax, social contributions, accounting, excise duty on alcohol and cigarettes, real estate tax, tax on gambling and slot machines.
For example, it is expected that the corporate tax rate will increase from 19% to 21%, as well as the introduction of three VAT rates: 0%, a reduced 12% (instead of the previously existing 10% and 15%) and a basic 21%.